LIFE INSURANCE PLANNING

No matter what stage of your life you are at, LIC is there to hand hold you not only through your needs of risk cover, but more importantly LIC makes sure you live well today, even as you save for tomorrow.

Stage 1: The Starting-out years: (25 – 30yrs)

Things that happen at this stage:

Since this the first time Stage of your adult life, you have nothing or little saved and it is a virtual certainty that you have done no serious financial planning for your future.

This is the time you get your first serious job, get married and have children.

By the time you move this stage, you have gained knowledge about budgeting, saving and investing your money.

Potential trouble Spots:

You started out with next-to-nothing and you must buy everything-car, house, furniture, furnishings and more. This is the stage when you must gain the discipline to spend less and save more.

If you are not careful, you can pile up debts so fast at this stage that you never regain your financial footing.

Stage 2: The Setting-up years:(35-45) yrs

Things that happen at this stage:

You are already settled with your finances to some extent.

You probably own a home and one or more cars, and have learned a lot about managing money and financial plans for the future.

You probably have moved beyond your first job into something that pays better and offers more long term potential.

Potential trouble spots:

These are heavy spending years, as the kids get older, and living expenses pile up. Its easy to let your controls over spending and debt slip which can undermine all your financial plans.

Keep insurance current with your growing net worth. If you don’t have enough life insurance ,your premature death, at this stage, could leave your family nearly destitute,.

Don’t let the first signs of financial success go to your head. You are making a decent income and you have started to build retirement savings to a reasonable level. Its easy to look at your accumulating wealth and start frittering away money on impulsive items from fancy vacations to a more costly sports utility vehicle than you can really afford.

Life Insurance planning at this stage would help you in getting many benefits in the future.

Stage 3: The spending years: (45-55) yrs

Things that happen at this stage:

Income should be up at this stage, because you are moving into your peak years at work.

But spending is also up, because you almost certainly will be paying college bills at this stage.

Saving money will be hard -but you must do so.

Life Insurance planning should help you at this stage by getting tax free returns

Potential trouble spots:

Letting spending on college eat up your retirement nest egg-and cutting back on new contributions to retirement savings plans.

Going deeply into debt , as you try to maintain your lifestyle in the face of heavy college bills.

Increasing the risk level of your investments. Partly that comes because money is flowing out so fast to pay college bills , but also because you have been investing for years ,and are aren’t as cautious as you used to be.

Not making serious plans for retirement you feel you haven’t saved or invested enough to give you the retirement you want.

Stage 4: The Accumulation Years 🙁 55-65) yrs

Things that happen at this stage:

Proper Life Insurance planning with LIC Plans would help you to accumulate for future.

This is when your retirement planning should kick into high rear.

These should be the years of peak income. College bills are wholly, or mostly, past-meaning there is more money to be saved and invested.

Years of compounded, tax-sheltered growth in retirement savings account are paying in these accounts reach very impressive levels.

Potential trouble Spots:

Jumping the gum on retirement spending .The accumulation of assets in retirement savings accounts looks so temping, that it is easy at this stage to lose control and start spending your nest egg prematurely.

Not doing your late-stage retirement planning early enough to make wise decision -making .Investigate communities where you might want to live in retirement at this stage -rather than buying and moving much investigation after you have retired.

Taking early retirement without investigating how much you lose in pension and other benefits until the normal retirement age.

Stage 5: The Transition Years: (65-75)yrs

Things that happen at this stage:

By this stage, you most likely are retired. You enter the transition years living on income from a post-retirement job and /or from your company pension and Social Security.

As you move through the transition years, you come to really less on that post-retirement job, and more on the money you have started taking out of your retirement savings plans.

These are good years for most people. Health is generally good and many people do the traveling they never had time to do during the earlier stages.

Potential trouble Spots:

You see retirement as a time for cutting loose, so you start spending your nest egg far faster than you should. Before you know it, you have drawn down your retirement savings far below where they should be at this stage.

Because you are allowed a lump sum distribution from company pension plan, you take the money and run-instead of rolling it over into an IRA to keep it tax sheltered. Resist the temptation to use that lump sum distribution as found money to be blown on a cruise or a fancy SUV.

You become a hyper cautious investor forgetting that the money in your retirement savings accounts must be able to hold up against inflation for 20 or 30 yrs more.

You forget how critical it is to remain physically and mentally fit in retirement, so you let your guard down and develop physical ailments or fall into a serious depression.

Taking early retirement without investigating how much you lose in pension and other benefits by not staying until the normal retirement age.